June 18, 2024

The Central Bank will introduce a ban on the issue and circulation of cryptocurrencies in Russia

The Central Bank will introduce a ban on the issue and circulation of cryptocurrencies in Russia

The Bank of Russia intends to ban the issuance of digital assets; a corresponding provision is planned to be introduced intobill on the cryptosphere. Reporters from the agency «Interfax» said Alexey Guznov, head of the legal department of the Central Bank.

In addition, the authorities will prohibit the organization of the circulation of tokens in Russian jurisdiction.

The official stressed:

«The position of the Central Bank remained unchanged.We still believe that there are great risks in legalizing the circulation of digital currency, both from the point of view of financial stability and from the point of view of combating money laundering.

It was decided to approve the document onregulation of relations between token holders by analogy with the usual currency legislation in force in the 1990s. At the same time, the regulator continues to insist that issuing cryptocurrency in Russia carries high risks to the stability of the financial sector.

“In terms of the functioning of the financialsystems and systems of consumer protection, legalization of the issue and organization of the cryptocurrency circulation - this is an unjustified risk. Therefore, the bill directly formulates a ban on the issue, as well as on the organization of circulation of cryptocurrency, and introduces liability for violation of this ban. ”

If any developers ignore the banto issue coins, then responsibility will be imposed on such companies. But the state will not be able to limit those operations, for example, in the movement of bitcoin, performed in the jurisdiction of another country.

“If a person who owns, conditionally, bitcoins, makes a transaction in a jurisdiction that does not prohibit this, we are unlikely to be able to limit it”- explained Guznov.

Once again, he clearly distinguished between cryptocurrencies anddigital financial assets to which the document is directed. It is expected that the Central Bank of the Russian Federation will regulate information system operators and exchange operators.

“The project involves obliging the operatorinformation system, where digital financial assets will be issued, if necessary, provide access to them. Technologically, as colleagues say, this is possible, although maybe this is somewhat inconsistent with the ideology of the notorious Bitcoin. ”- emphasized Guzov.

Experts believe that the initiative to ban the production of cryptocurrencies in the Russian Federation can significantly harm the development of blockchain technologies and the economy as a whole.

“Banning cryptocurrencies is a step that cansignificantly push the country's economy back. The fact is that cryptocurrencies are just one not the most important manifestation of the capabilities of blockchain technology. If there is a legislative ban on the issuance and circulation of cryptocurrencies, the whole technology will suffer ”- said a member of the Commission for the Legal Support of the Digital Economy of the Moscow branch of the Russian Bar Association Yuri Brisov.

He noted that a reasonable decision would be to establish standards for verifying the participants of the cryptocurrency turnover and adopt the standards developed by the FATF.

“To date, the ban on cryptocurrencies is comparable to unscrewing one leg by the chair with the naive belief that it will not lose stability”, Says Brisov.

Guzov also expressed the hope that the bill on digital assets will be adopted in the second reading in the near future, although the final version of the document is still not approved:

“I'll say it carefully: there are certain chances to reach the text that will allow the bill to be adopted.”

It should be noted that the State Duma has previously repeatedly stated that parliament needs additional time to assess all the risks associated with the legalization of the cryptocurrency industry.